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Consumer Behavior at Disney
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  CONSUMER BEHAVIOUR Case Analysis on Disney Consumer Products: Maretin! Nutrition to C ildren Su#mitted #y:$rou% &'A# ina( Reddy)*)*+)Aas Ad (aryu)*)*+,- yati Merc ant)*),*)Mayan Po arna)*),**Nu%ur .os i)*))*/Su#mitted on:),0+/0,+)1 Institute o2 Mana!ement3 Nirma Uni(ersity  Executive Summary: Disney as a brand became a household name with a huge fan following. The company enteredvarious businesses, Disney Consumer Products being one of them. This SBU relied on alicensing model where the ic!ey ouse and other characters appeared on products. TheDisney cartoon characters were used for promoting various foods li!e candies and coo!ies thereby generating demand among children. #ith growing issues related to obesity among !ids,Disney was accused of contributing to it in some way. Therefore they decided to venture intofood products that would be demanded by the children, but at the same time be approved by the parents. They aimed at changing the food habits of children over a period of time and ensure thatthey lived a healthy life. The dilemma they are facing is on how to ma!e these healthy food products more acceptable with minimum possible damage. The options they have are to continuewith the current line or introduce the healthy foods line with promotion plans in !inder garden,spreading awareness among the children regarding the nutritional value and differentiation fromits competitors. The recommendation is to introduce the healthy line of foods. Though this optionwould dilute the customer base right now as food habits ta!e time to change the long termeffects of this step will have more benefits.  Situation Analysis: Disney Brothers Cartoon Studio was started in $%&' by #alter (lias Disney and his brother )oy.This later went to be renamed as the #alt Disney Company which had grown to be a brandsynonymous with the words fun and magic. *s of &++, it comprised of - maor businesssegments / edia 0etwor!s, Par! 1 )esorts, Studio (ntertainment and Disney Consumer Products. Disney was !nown to be a brand for its beautiful imagery and emotional storytelling andintroducing feature length films to audiences accustomed to 2 minute short films. 3t was reportedthat around the world families spent an annual average of %.$ billion hours immersed in Disney branded e4periences and products. The Disney Consumer Products was a global product organisation which helped e4tend theDisney brand to interactive games, food and beverages, electronics and animation art. Since itsinception it relied on a licensing only model where the ic!ey ouse and other charactersappeared on products such as candy, coo!ies, toothpaste and in ad campaigns for bread, mil!,orange uice and ice cream. Ta!ing this licensing model forward, Disney alternatively also aimedat sourcing through direct retailers or partnering directly with retailers. 3n its approach of  partnering directly with retailers, Disney developed a broad range of products 5roger Supermar!ets, which was the largest pure grocery retailer in the US. The main components of this association were pricing and brand e4clusivity. Being in the role of licensor of pac!aged foods, Disney had adopted a strategy of being in funcategories as Disney is about fun. 6owever, during the course of their setting foot in the food and beverage industry, they reali7ed that there was a gap between what the children demanded andwhat their mother8s purchased. They also were caught in the middle of a crisis report whichsuggested that the obesity levels in !ids were on the rise thus posing a threat to them being proneto diseases in their future. 6ence, they decided to venture into product categories li!e water,fresh foods, fro7en foods, uice, pasta, soup, cereal, ba!ed goods and dairy9mil! which wouldma!e the !ids feel special and would be non:patroni7ing and mom approved. These would proveto be good food with a great fun element, e4actly how Disney would li!e to position itself.  *fter adding these products in their assortment, Disney had an aim to ma!e sure all their licensing agreements followed suit. The ones that didn8t were parted ways with. Disney alsoaimed at reducing the portion si7es made available to reduce the obesity levels. The Disneye4ecutives reali7ed that in order for these foods to appeal to the !ids they would have to includetheir favourite characters and the aura and magic of Disney into the pac!age. To be able toachieve this, 3magination ;arms supported Disney by trying to e4plain the nutrients in a !idfriendly way. The two companies adopted a three ponged product development strategy whichwas as follows< ã Differentiate commodity produce through promotion ã Create value:added products through product preparation or pac!aging. ã Develop e4clusive product varieties that would yield more children friendly food. This approach would ultimately differentiate and built the brand. 3n this field, Disney faced competition from 0ic!elodeon, Sesame #or!s and #arner Bros. The new approach of Disney to meet the nutrition standards brought with it losses that wouldta!e time to overcome. =icensing agreements that would not support these standards Disney setfor them were discontinued. They re:positioned themselves and e4pected to reap the benefits of this in the future by leveraging on the vast resources of the #alt Disney Company by gainingmar!et share and acceptance. They aimed to change the way !ids consumed food and thusmoved on the path of healthy eating habits thus leading to a longer, happy life. Problem Statement: Could Disney use its >magic? to get children to switch from sugary, processed foods and becomelifelong converts to a more nutritious diet@
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